Janus Capital Group Inc. is a leading asset manager offering individual investors and institutional clients complementary asset management disciplines through the firm's global distribution network. Janus Capital Group consists of Janus Capital Management LLC Berger Financial Group LLC Enhanced Investment Technologies LLC and Bay Isle Financial LLC. Janus Capital Group Inc. has a market cap of $1.97 billion; its shares were traded at around $12.2 with a P/E ratio of 29.7 and P/S ratio of 1.8. The dividend yield of Janus Capital Group Inc. stocks is 0.3%. Janus Capital Group Inc. had an annual average earning growth of 8.4% over the past 5 years. Highlight of Business Operations: Market conditions improved during the second quarter 2009, leading to an increase in ending assets under management of $21.7 billion, or 19.6% from March 31, 2009, and higher revenues and operating margin. Year-over-year, assets under management, revenues and operating margin declined primarily as a result of the significant deterioration in global markets in the second half of 2008 and first quarter 2009. Second quarter 2009 long-term net inflows totaled $2.3 billion compared with $5.0 billion of long-term net inflows for the second quarter 2008.
On July 14, 2009, JCG announced the departure of Gary D. Black and the appointment of Chief Executive Officer, Timothy K. Armour effective July 13, 2009. In connection with Mr. Blacks departure, JCG will incur a $12.1 million charge, including approximately $6.8 million of cash and $5.3 million for the acceleration of unvested stock, options and mutual fund share awards. The charge will be reflected in JCGs third quarter results.
On July 14, 2009, JCG undertook a capital raise and launched a tender offer for certain outstanding senior notes. The capital raise was completed on July 15 and included common stock and convertible senior notes offerings, resulting in net proceeds of approximately $218.5 million and $164.9 million, respectively. The proceeds, along with available cash, will be used to repurchase up to $400 million aggregate principal amount of JCGs outstanding senior notes due 2011, 2012 and 2017 through a tender offer and for general corporate purposes, including the repayment or repurchase of any of the foregoing series of notes that remain outstanding. The tender offer expires August 11, 2009.
Effective July 6, 2009, JCG merged two of its domestic mutual fund trusts, Janus Investment Fund (JIF) and Janus Advisor Series (JAD) into a single trust. The merger is designed to simplify JCGs product offerings and provide mutual fund investors with a broader range of investment strategies. Merger related costs totaled $3.2 million in the second quarter 2009. An additional $5.0 million to $6.0 million is expected to be incurred in the second half of 2009 to finalize the merger.
Read the The complete ReportJNS is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Kenneth Fisher of Fisher Asset Management, LLC, Brian Rogers of T Rowe Price Equity Income Fund, John Keeley of Keeley Fund Management, Robert Olstein of Olstein Financial Alert Fund.